HM Revenue and Customs have announced the creation of a new taskforce to tackle the problem of tax evasion on property transactions.
Following on from similar successful schemes, which have targeted restaurants, scrap metal dealers and fast food outlets, property rentals are the latest area to come under scrutiny.
Launching in Yorkshire, the North East, East Anglia and London, HM Revenue & Customs (HMRC) expect the initiative to recover more than £17m in taxes and penalties from those landlords who have yet to declare their rental income.
Michelle Stoppard, franchise owner of Martin & Co in Pontefract says “Landlords need to be aware that they have a responsibility to declare their rental income to HMRC, whether they make a taxable profit from the rental or not. You are required to fill in a Self-Assessment tax return if you receive any income from renting property in the UK.”
HMRC will be targeting landlords in Leeds and York, as well as those in other areas, and HMRC’s Mike Eland said:
“These new taskforces will bring together specialists from across HMRC to tackle tax dodgers. If you have paid all your taxes you have nothing to worry about. But deliberately evading tax can land you a heavy fine or even a criminal prosecution as well. This is not an empty threat - HMRC can and will track you down if you choose to break the rules.”
For advice on renting out your property and to discuss the tax implications of doing so contact your local Martin & Co office on Pontefract 01977 799550 or visit our website www.martincopontefract.co.uk.